Robinhood Shares Drop 8% on Crypto Revenue Slump — SkimNews
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- Robinhood reported Q3 net income of $468 million, or 51 cents per share, falling short of the 56-cent Wall Street estimate despite flat revenue at $1.42 billion
- Robinhood saw transaction-based revenue grow 19% year-over-year to $867 million, fueled by a more than 500% surge in event contracts and 31% growth in options trading
- Cryptocurrency revenue at Robinhood dropped 55% to $120 million, offsetting gains in other trading segments and raising concerns about reliance on volatile asset classes
- Net deposits on Robinhood’s platform reached $15.7 billion in Q3, representing a 17% annualized growth rate based on Q2 2026 platform assets
- CFO Shiv Verma noted event contracts tied to crypto movements performed well, providing users an alternative way to trade crypto sentiment amid declining spot activity
Why it matters: Robinhood beat revenue expectations but missed on earnings due to crypto’s sharp revenue decline, which markets punished with an 8% stock drop—highlighting investor skepticism about whether new businesses like event contracts can offset volatility in core trading income.
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